Under what circumstances does the variance inflation factor signal that multicollinearity may be a problem?
A) When the value of VIF exceeds the size of the sample from which the regression model was developed
B) When the VIF value is approximately 1.0
C) When the VIF is greater than or equal to 5
D) When the VIF is a negative value

Question

Quizplus · Accepted Answer

The Variance Inflation Factor (VIF) is used to detect the presence of multicollinearity among the independent variables in a regression model. A VIF value greater than or equal to 5 suggests that multicollinearity may be a problem, indicating that the independent variables are highly correlated with each other.

Under What Circumstances Does the Variance Inflation Factor Signal That